To Improve the Work Environment for Its Engineers, Segment

question 110

Multiple Choice

To improve the work environment for its engineers, Segment.com rearranged its work areas to move the engineers to the quietest area of its building, and moved its sales and marketing force to to the loudest area.The result was an increase in output equivalent to hiring 10 to 15 additional workers.Which of the following statements best describes this change at Segment.com?

• A)The change implemented is not an example of technological change because it did not require the use of new machinery or equipment.
• B)Technological change refers only to the introduction of new products or improvements to existing products. As such, the scenario described in the question is not technological change.
• C)The firm is able to produce more output using the same number of inputs. Therefore, Segment.com has implemented a positive technological change.
• D)The scenario described is an example of management efficiency and not technological change. Essentially, the firm changed its way of operating its business.

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Definitions:

Consumer Surplus

The discrepancy between what consumers are willing to spend on a good or service and their actual expenditures.

Surplus II

An excess of supply over demand in the market, leading to excess goods and potential lower prices.

Consumer Surplus

The separation between the entire amount consumers are keen and financially able to expend on a good or service, and the amount they actually expend.

Surplus I

An excess of supply over demand, leading to a situation where the quantity of a good or service exceeds the quantity demanded at the current price.